4B

Question 1

Which of the following budgets is the comprehensive planning document for the entire organization?

Answer 1

Master Budget

Question 2

The combined cash budget ________.

Answer 2

merges budgeted cash collections and cash payments to project the firm’s ending cash position

Question 3

Which of the following is important to a manager at a merchandising company when preparing the master budget?

Answer 3

The length of time between sales and deposits

Question 4

Actual or prior year budgeted data is ________.

Answer 4

the starting point for creating the budget.

Question 5

Which of the following is NOT an outcome of the combined cash budget?

Answer 5

Total liabilities and stockholders’ equity

Question 6

What are the required inputs for the FORECAST.LINEAR function?

Question 7

Which of the following is TRUE about credit card sales and budgets?

Answer 7

A sale is shown on the sales budget, in the same month as the sale.

Question 8

When using the INTERCEPT function in Excel, what data is required?

Answer 8

Known or existing x-axis and y-axis values

Question 9

Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge.

What is the transaction fee Customer World must pay on this sale?

Answer 9

6.20

Question 10

What are the required inputs for the FORECAST.LINEAR function?

Answer 10

known or existing x-axis and y-axis values

Question 11

The Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in November for $6 each.

What is the total sales revenue for the sales budget during October and November?

Answer 11

The total sales revenue for the sales budget during October and November is $36,000 October; $48,000 November. The other answers are not correct.

October: 6,000 × $6 = $36,000

November: 8,000 × $6 = $48,000.

Question 12

Benchmarking_______

Question 13

Which of the following budgets reveal a manager’s intent to invest in new property, plant, or equipment?

Answer 13

Capital expenditure Budget

Question 14

In the scatterplot and trendline shown above, which option extends the trendline past the highest observation on the x-axis?

Answer 14

Forecast forward

Question 15

Benchmarking_ _ _ _ _ _ _

Answer 15

May help a manager motivate employees and provide a measure to evaluate performance.

Question 16

Customer World provides services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a case of flash drives for $65 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.25 + 2% of the total charge.

What is the transaction fee Customer World must pay on this sale?

Answer 16

$0.25 + (2% ×$65) = $0.25 + $1.30 = $1.55

Question 17

Which Excel function will predict the point at which a regression line crosses the y-axis?

Question 18

Safety stock is

Answer 18

Inventory is kept on hand to account for increases in consumer demand.

Question 19

A line of credit ________.

Answer 19

Is a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note

Question 20

Which Excel function will predict the point at which a regression line crosses the y-axis?

Answer 20

Intercept.

Question 21

The managerial accountant at Local Produce Services expects to collect 40% of its credit sales in the month after the sale and 60% two months after the sale. Assume credit sales in January were $200,000 and February sales were $100,000.

January credit sales

$200,000

February credit sales

$100,000

What is the anticipated cash collection of credit sales in March from January and February sales?

Answer 21

The anticipated cash collections of January and February credit sales in March is $160,000. The other answers are not correct.

January: 60% × $200,000 = $120,000

February: 40% × $100,000 = $40,000

$120,000 + $40,000 = $160,000

Question 22

Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge.

What is the transaction fee Customer World must pay on this sale?

Answer 22

$0.20 + (1% × 600) = $0.20 + $6 = $6.20

Question 23

Which of the following is a benefit of budgeting which helps a manager motivate employees and evaluate performance?

Answer 23

Benchmarking

Question 24

Inventory kept on hand to account for increases in consumer demand or machine malfunction in case of emergency is ________.

Answer 24

Safety Stock

Question 25

Inventory kept on hand to account for increases in consumer demand or machine malfunction in case of emergency is ________.

Answer 25

Units to produce.